Abstract
Negotiability by contract is nothing more than a phrase used to denote an attempt to create the effects of negotiability on non-negotiable contracts. The usual provision found to impart such negotiability is an agreement in an otherwise non-negotiable contract that the obligor will not assert defenses of fraud, duress, mistake, lack of consideration, failure of consideration, or any other defense against a bona fide assignee of the contract.
There would seem to be no reason why the attributes of negotiability should not be added to otherwise non-negotiable contracts so long as the parties have clearly expressed their intention that the contract will have such an effect, and that such agreed stipulation is not contrary to any public policy or is in itself illegal.
The Existing Law of Negotiability by Contract …
Code Provisions in General …
Application and Effect of Code Provisions …
Conclusion …
Recommended Citation
Robert S. Hinds,
Bills and Notes — Negotiability by Contract Under the Uniform Commercial Code,
33 Neb. L. Rev. 613
(1953)
Available at: https://digitalcommons.unl.edu/nlr/vol33/iss4/9